What is Credit Control.

What is Credit Control

Credit Control is a complete credit management system built on Frappe and ERPNext. It manages the entire life of a credit relationship with a customer — from the moment they apply for credit, through setting and enforcing their limit, handling disputes, chasing overdue payments, and reporting on the health of the money owed to the business.

In plain terms: it lets the business sell to customers now and collect payment later, while staying in full control of how much credit each customer gets and making sure overdue accounts are followed up properly.

What it does

• Credit applications and onboarding — Existing customers apply for credit through a structured form. The credit team reviews, approves, and the system automatically sets up the customer's credit profile and limit.
• Credit limits — Every limit is a governed, approved decision with a full paper trail. Once approved, ERPNext enforces it — blocking orders that would exceed a customer's limit.
• Disputes — When a customer challenges an invoice, the disputed amount is ring-fenced from collections until it's resolved, so nobody is chased for money they're legitimately contesting.
• Collections and dunning — Overdue invoices are followed up automatically through an escalating series of reminders, which pause for disputes and promises to pay.
• Dashboards and reporting — The AR Dashboard, Credit Cockpit, and a set of reports show who owes what, how overdue they are, and how effectively the team is collecting.
• Customer portal — Customers get a self-service portal to view invoices, download statements, raise disputes, make promises to pay, and apply for credit — without calling the team.

Who uses it

• Credit Analysts — assess new customers and prepare applications
• Credit Managers — approve credit limits and handle overrides
• Collectors — chase overdue payments and manage disputes
• Credit Directors — final approval authority and write-offs
• Customers — use the self-service portal